Bridging Finance Takes Centre Stage as MFAA Addresses Industry Knowledge Gap

The Mortgage & Finance Association of Australia (MFAA) has announced a dedicated webinar on bridging finance, scheduled for April 14, 2026. The session — titled "Bridging Finance in Practice: Use Cases and Structuring Considerations" — signals a clear recognition that bridging finance is becoming an increasingly important tool in the broker's toolkit, and that many practitioners need deeper knowledge to serve clients effectively.

What Is Bridging Finance?

Bridging finance is a short-term loan that "bridges" the gap between two financial events — most commonly between purchasing a new property before an existing one has sold.

Common use cases include:

• Buying a new home before your current home settles
• Property developers needing short-term capital between construction completion and long-term refinancing
• Investors seizing a time-sensitive opportunity before existing equity is released
• Businesses using property assets as short-term security for working capital

Why Bridging Finance Is Growing in Importance

Australia's current property market conditions are creating more demand for bridging solutions:

1. Simultaneous buy-sell timing: In a two-speed market (Sydney/Melbourne cooling while Brisbane and Perth rise), owners looking to sell and buy simultaneously face increased timing risk
2. Settlement delays: Longer settlement timelines in some markets create funding gaps that bridging products are designed to fill
3. Developer finance: With apartment approvals surging, more developers need short-term construction and completion finance before long-term lending kicks in
4. RBA rate uncertainty: With the next RBA decision on May 5, 2026, some borrowers prefer short-term bridging structures over locking into medium-term rates prematurely

How Non-Bank Lenders Like MPFG Capital Approach Bridging Finance

Non-bank lenders are typically better positioned than major banks to provide bridging finance because:

• Faster approval and settlement: Bridging situations are time-sensitive; non-bank lenders can often move in days rather than weeks
• More flexible security structures: Non-banks can take first and second mortgages over multiple properties
• Exit strategy focus: Good bridging lenders assess the viability of the exit strategy (the sale or refinance that will repay the bridge) rather than just current income
• No rigid LVR rules for short-term facilities: MPFG Capital can structure private funding arrangements that major banks' standard loan policies don't accommodate

Key Questions Borrowers Should Ask

Before entering a bridging arrangement, borrowers should understand:

• What is my exit strategy? (Sale of existing property, refinance, or long-term finance)
• What are the total costs? (Higher interest rates offset by short loan term; fees to compare)
• What happens if settlement delays? (Understand the maximum loan term and what flexibility exists)
• What LVR am I working with? (Combining the bridge loan and any existing mortgage against total security)

MPFG Capital's Private Funding Products

MPFG Capital offers bridging and private funding solutions designed for exactly these scenarios — including for self-employed borrowers who may not qualify for traditional bank bridging products.

*This article is based on the MFAA's April 2026 industry announcements and is general information only. It does not constitute financial advice. Bridging finance involves specific risks — always seek independent advice before proceeding. MPFG Capital ACL 553698.*